Abstract
Drawing on the literature focusing on service innovations, the study aims to examine interrelationships of
customer involvement (responsive and proactive), appropriability and firm’s innovation performance by using the structural
equitation modeling. Based on a dataset of 311 top service firms in Taiwan, the results support that informal appropriability
plays positive mediation role of the relationship between types of customer involvement and firm’s innovation performance.
The paper concludes that taking advantages of customer involvement and leveraging them to facilitate informal protection
efforts to attain superior firm’s innovation performance.
Keywords - Customer Involvement, Appropriability, Innovation Performance